For Question 20a-20c use the following set of cash flows:

Initial investment = $1,300,000

Yr 1 : 140,000

Yr 2: 150,000

Yr 3: 155,000

Yr 4: 175,000

Yr 5: 190,000

Sale of property occurs at the end of Yr 5 for a price of $1,750,000

20a) What is the IRR of this investment?

a. 16.41% b. 14.51% c. 12.22% d. 17.09%

20b) If the hurdle rate for this company is 11.50%

a. There must be a positive IRR b. There must be negative NPV c. The NPV is zero because the IRR is above the hurdle rate d. There must be a positive NPV

20c) The NPV of the investment is

a. $151,902 b. - $125,678 c. $296,968 d. $-23,455